Banks 'may be nationalised' despite Nama

irishtimes.com/newspaper/bre … king41.htm

I find the phrasing of this comment somewhat disingenuous, I understand what he is trying to say but to compare creditors and depositors using the term bailout is misleading as far as I am concerned. Protecting depositors is just giving back what is rightfully theirs, bailing out banks, developers, etc., is just that, saving them from the consequences of their ill-thought out decisions.

On his point of NAMA chasing developers for debt, the lack of transparency involved means that I can have no faith that this will happen.

Yeah, yeah Colm, I’m sure the developers are quaking in their boots over this change of creditor.

If there was no bailout we would have sold the loans for cents on the euro to Latvian / Lithuanian collection agencies.

That’s the kind of workout that should be happening.

+1

But it is absolutely guaranteed that they will overpay for the loans. If they weren’t going to overpay, what would all ths talk about paying “longterm economic value” as oppose to current market value be?

Anything paid above the current market value (no matter how much of a “discount” :unamused: it is to book value or how realsitic the “longterm economic value” projection is) constitutes an overpayment.

So you favour a free market approach?

It’s hardly interesting.

There are many steps on the path.

Further hardline solutions should the opportunity arise cannot be ruled out of course… :nin

Actually, even if they were marked to market now, they would still most likely be overpaying.

I have an issue with this overpaying malarkey.

How come all this talk of overpaying is in relation to the values being bandied about now?

Surely all the overpaying happened in the bubble phase.

All that could possible happen now is we pay non-bubble prices for a load of shit we don’t need.

Overpaying is for banks and developers.

How do you mean, are you referring to the fact that prices are still falling?

Assuming you are, you are of course correct that we could still be overpaying for the assets even if we buy at today’s prices. But i was under the impression that time was of the essence and that all we could honestly do is get the best possible value for the taxpayer on the day of purchase.